An example of a for-profit consortium is a group of banks that work together to grant a loan – also known as a Syndicate. This type of loan is more often known as a syndicated loan. In England, it is common for a consortium to buy football clubs in financial difficulty to protect them from liquidation. In a consortium, each party uses its existing resources to carry out the work. They can tap into their existing resource pool without the need to obtain permission from the other party. For example, in the past, there was a usual practice for consortium members, say to provide 2% of their price as a consortium leader fee. Today, the preferred solution is for the consortium leader to bear the management costs (and set his price accordingly). This will avoid invoicing between unionized partners, which would not be a good thing for tax clarity when it comes to separating profits and losses. Cooperative Research and Development Agreement (CRADA): a legal agreement between a federal laboratory and the university to work together on a project.
The agreement does not involve a transfer of funds from the government. A CRADA allows the federal government and the university to optimize their resources, share technical know-how and share the intellectual property that results from the efforts. CRADA Is used by federal laboratories to provide facilities, equipment, personnel, services or other non-monetary resources to support a joint research effort. It`s not that easy for unionized partners! As explained above, the key parameter for partners is their performance level. Initially, the parties have only a rough idea of their importance in the overall price of the contract. It is only at the time of submission of the common tender that the proportional share of each party is known: it is the percentage of its price in relation to the total price. This proportion will vary over the course of the project due to the inevitable change orders, price revision (if any) and successful claim. A consortium agreement is a contract that allows multiple sponsors (usually non-federal organizations) to participate together in supporting research and share research results equally. However, if more than one sponsor participates in a research project, the program will not automatically be transformed into a consortium. Within a consortium, the potential profit or loss depends on the performance of each party and its magnitude. The actual benefit is not known to the other partner. One party may have a loss, while the other may make gains without having to compensate.
Service contract (SA): agreement between the university and a beneficiary in which the university provides a rental service. These agreements are only suitable for projects that do not involve basic or applied research. A Sponsored Research Agreement (SRA) is entered into if an external institution, usually industry, provides UTD funds to support a particular research project, pending reports or certain results. While initial interviews take place between industrial sponsors and UTD faculties or research executives in different ways, projects should not be implemented unless a well-defined research proposal, including a budget, has been submitted through internal audit procedures to the UTD and a funding agreement has been negotiated and signed by the authorised representatives of both parties. . . .